Picton has bought a 335,000 sq ft warehouse let to Random House Group in Grantham, Lincolnshire, from White Pillar Properties for £11.5m.
The purchase price for the shed represents a net initial yield of 8.2% and capital value of £34 per sq ft.
The income is secured against book publisher Random House Group (a Penguin Random House Company) for just under nine years and currently produces an annual rent of £1m, equivalent to just under £3 per sq ft.
Picton Capital chief executive Michael Morris said: “This acquisition complements recent trading activity in the portfolio. It provides secure income at an attractive yield, with a low entry point in terms of both rental level and an overall capital value per square foot which is significantly below the cost of construction.
“Following this transaction, we have now deployed all of the capital raised from both our recent share placings and disposal programme on an earnings accretive basis.”
Colliers International represented Picton; Knight Frank acted for the vendor.
nick.whitten@estatesgazette.com
